RTI says CBI not probing Karnataka bank scam, contradicts Siddaramaiah’s claim

Mangalore Today News Network

Bengaluru, August 20, 2024: In a twist to the scam involving Bengaluru-based Sri Guru Raghavendra Sahakara Bank Niyamitha (SGRSBN) cooperative bank, an RTI response from the CBI has revealed that the agency was not investigating the case. The RTI also contradicted Karnataka Chief Minister Siddaramaiah’s claim that the CBI was handling the matter.

This came against the backdrop of a huge controversy over Siddaramaiah’s prosecution approval by the Governor in the alleged Mysore Urban Development Authority (MUDA) scam. However, the Karnataka High Court deferred the proceedings till August 29, in a relief for the Chief Minister.

In December last year, Siddaramaiah claimed that the investigation into SGRSBN bank scam was handed over to the CBI. But the agency’s RTI response has come as a major disappointment for the depositors, who had demanded a CBI probe, believing it to be the only path toward justice and uncovering the truth.

Siddaramaiah had said that the depositors’ future was uncertain after the bank scam came to light and claimed that the investigating agency had received approval to investigate the case.

"An approval has been given to hand over the investigation of the Guru Raghavendra Cooperative Bank, Vasishtha Bank and Guru Sarvabhauma Bank scams to the CBI," he said.

"Thousands of depositors had invested their lifetime savings in the bank with hopes of securing their retirement, children’s marriages, buying a house, and other dreams. Due to the bank’s fraudulent activities, they have now been left uncertain about their future," he added.

Siddaramaiah said that he had raised the issue of a CBI probe into the bank scam by doing numerous protests when he was the Leader of the Opposition.

"In the past, as the Leader of the Opposition, I raised my voice both inside and outside the assembly, participated in protests, and demanded that this case be handed over to the CBI for investigation," he said.

"I have personally witnessed the despair and distress of the depositors who lost their savings. With the intent of ensuring a proper investigation and delivering justice to all the victims, I am handing over the case to the CBI for investigation," he further said.

WHAT IS THE SGRSBN SCAM?

The scam involving SGRSBN, a Bengaluru-based cooperative bank, came to light in 2020 when the Reserve Bank of India (RBI) imposed withdrawal restrictions on the bank, revealing misappropriation to the tune of Rs 2,500 crore by the bank management.

More than 45,000 depositors had put their money in the bank, of which most received the Rs 5 lakh insurance amount from the Deposit Insurance and Credit Guarantee Corporation.

However, over 15,000 depositors with deposits exceeding Rs 6 lakh have not been fully compensated. The Enforcement Directorate had attached the bank’s properties worth Rs 159 crore.

The bank management, in connivance with others, has been accused of siphoning off large sums of money.